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A U T O
January 3, 2005
INSIDE PAGE 3
A U C T I O N
S H O P P E R
Used Car News Mailed This Issue: 65,000 New And Used Car Dealers
$3.00
Employee Retention Key to Dealer Success By Jim Stickford Used Car News Staff Writer
There are a lot of obstacles along the path to profitability for dealers, including the retention of
good sales staff, which is why two large dealer chains have created “universities” to train and retain employees. Larry Beasley, director of certified and subprime sales at Sonic
Automotive, briefly discussed the problem at the recent National Remarketing Conference & Expo in Dearborn, Mich. He said that 2003 was a bad year for Sonic in terms of sales staff turnover. It was about
146 percent. Numbers like that are bad for the business, which is why Sonic is developing a program to significantly reduce that figure. Turn to page 38
Ad Crackdown Costs Dealers $2,000 Penalty
A fixture in the usedvehicle industry is set to retire early this year. PAGE 7
Lessons Becoming Commonplace By Jim Stickford Analysts, executives and experts weigh in on what’s in store for 2005.
Used Car News Staff Writer
PAGE 28
Even a rough trade-in can make a used-car transaction better. PAGE 40
— Doug Benedict/The Morning Call Inc. Copyright 2004
REALITY STARS: Marc Gombosi, left, and his father, Bob, have been chosen to be the stars of the FX cable network pilot reality show “Or Best Offer.” The show, if picked up, would show the life of a small used-car dealership in Pennsylvania.
Reality TV Shops for Used Car Dealership in ‘Blue Collar’ Town By Jim Stickford Used Car News Staff Writer
A 2002 Saturn S series wholesales for $4,921 with 35,484 miles.
Selling used cars can be profitable, and television producer C. Russell Muth is betting that it can also be entertaining. Muth, the co-executive producer of such hit shows as “American Chopper” on The Discovery Channel, has
produced a pilot show for the FX cable television network called “Or Best Offer.” The reality show, if picked up by the network, will take place at Bob Gombosi Auto Sales, a buy-here, pay-here dealership in Bethlehem, Pa. Bob Gombosi and son Marc run the store, giving it
a family dynamic that attracted Muth. “I did the show ‘American Chopper,’” Muth said. “It’s successful, so when I came up with the idea of doing a show in a used-car lot, I thought in terms of families and family-run businesses.” Muth said he helped Turn to page 33
AuctionNet Top Volume Vehicles 11/22/04-12/3/04 2005-1998 Model Years
Rush - Dated Material
Rank 1 2 3 4 5 6 7 8 9 10
Year 2004 2004 2004 2005 2004 2002 2004 2004 2004 2004
Model Ford Taurus Sedan 4D SES Chevrolet Classic Sedan 4D Pontiac Grand Am Sedan 4D SE V6 Dodge Grand Caravan SE Chevrolet Impala Sedan 4D Ford Explorer 4D XLT 4WD Ford Explorer 4D XLT 4WD/AWD Jeep Grand Cherokee 6 Cyl. 4D Laredo 4WD Toyota Camry 4 Cyl Sedan 4D Chevrolet Cavalier Sedan 4D
Source: N.A.D.A./NAAA AuctionNet
# Sold 2,311 1,985 1,664 1,524 1,207 1,120 849 821 790 740
Figures Are Based on Open and Closed Sales
Avg. Price $10,248 $7,881 $9,208 $13,387 $10,793 $12,598 $18,008 $16,658 $14,561 $6,704
Avg. Mileage 17,752 18,801 17,010 18,801 19,401 42,645 20,085 19,463 16,918 19,991 All Trim Lines
The state of Nebraska has started cracking down on the ads dealers place in newspapers, but many learned of the campaign only after getting fined $2,000. Eric Knudtson, general manager of Lincoln Auto Plaza Suzuki in Lincoln, Neb., said there was a change in state law concerning advertising content in 2004. “They just changed all the laws, and in September they sent out letters to dealers notifying them of this,” Knudtson said. “It was so vague that it was hard to know if you were affected by the change. They also sent out a CD with the law’s language, but it was all in
‘legalese.’” Ads must include price, payments, down payments, terms and APR, he said. “It’s all about full disclosure on everything,” Knudtson said. “You must show you have nothing to hide. You can no longer just put down a car and its options in your ad. It’s simple now, list everything or list nothing.” Brian Gibbs, owner of Sunset Motors in Omaha, Neb., was fined $2,000 by the state’s department of motor vehicles’ licensing board. “They sent off a letter on ad content a couple of months ago,” Gibbs said. “It never reached my desk, and I can’t proof all ads. We got into trouble when an ad in the Omaha World Herald Turn to page 42
Dealer Group Proposes Licensing for F&I Staff By Jeffrey Bellant Used Car News Staff Writer
The Virginia Automobile Dealers Association (VADA) will make a recommendation to the state Motor Vehicle Dealer Board to require that F&I personnel be licensed by the state. However, H. Carter Myers, owner of multiple franchises, including Colonial Auto Sales in Charlottesville, Va., said the VADA is not recommending that F&I (finance and insurance) personnel have their
own designated licenses. The association is suggesting that F&I personnel be required to simply have a sales license. Currently, F&I personnel in Virginia are not required to have a license, while dealers and salespeople in the state need to be licensed. There is no continuing education requirement, however. Myers, who is a nonvoting member of the VADA board, said that while not everyone is satisTurn to page 36
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